Hi guys....
Hi just finished my second studio, this one made whith the help of this forum... You can check it out here
http://www.johnlsayers.com/phpBB2/viewtopic.php?t=8109
Im looking 4 a way 2 calculate the prices that i have 2 charge 2 clients. Is there a "matemathic" way ? Does anyone has a formula 2 do that ? Iv invested around 6500 USD on the building only. How can i charge so ill be recovering the money. I think it depends also on how long it will take 2 recover the investment....
Im triyng 2 get a formula that can give me a fair price, not 2 much, not 2 litle... if it does exist, please advice...
THANKS
djo
Business Plan - how 2 calculate the price ????
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Djo
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gullfo
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you could base it on the rates you charge in your other studio... otherwise you can calculate it based on the local competition and your desire to pay off the construction (plus utilities, interest, etc... accrued along the way).
so if you think you're going to be [paid] working for clients 1000 hours per year and you need to pay off $10,000 (US), then you minimally would charge $10 per hour to pay it off in a year. then add in the money you need to live, say another $20K per year, so you need to add $20 per hour to that, so you might be charging $30/hour. or you can set up package deals - customers get 15 hours of studio time (recording/mixing/mastering?) for $350 (a discounted rate
) because people might find that more palatable.
now if other studios are charging $50 per hour and $650 for the same package, you may have under-priced yourself or rocked the competition (;-)) so you'd need to reconsider your rates to strike the right balance.
so if you think you're going to be [paid] working for clients 1000 hours per year and you need to pay off $10,000 (US), then you minimally would charge $10 per hour to pay it off in a year. then add in the money you need to live, say another $20K per year, so you need to add $20 per hour to that, so you might be charging $30/hour. or you can set up package deals - customers get 15 hours of studio time (recording/mixing/mastering?) for $350 (a discounted rate
) because people might find that more palatable.now if other studios are charging $50 per hour and $650 for the same package, you may have under-priced yourself or rocked the competition (;-)) so you'd need to reconsider your rates to strike the right balance.
Glenn